Indeed, "Watch out if the Fed ever loses control" and they will lose control. Even small changes in rates have a dramatic effect when there's so much leverage in the system. So, with $1.9Trillion in new stimulus to be followed by at least another $1Trillion in infrastructure spending, rates are destined to go even higher. The Fed can buy more bonds, but that means more inflation due to both US$ weakness and added liquidity which in turn increases rates requiring the Fed to buy even more bonds, creating even more inflation. QE becomes self defeating since it is the problem. At some point these bubbles collapse of their own weight. RE buyers are some of the most irrational consumers. In Seattle, there's less than 2 weeks of inventory and buyers are making multiple offers which are as much as 20% over asking and that can be $100K-$200K over asking. Some of these buyers are going have a lot of buyer's remorse. I would much rather buy RE when rates are sky high than when they are rock bottom...the principle amount is greatly reduced and rates can always be reduced through refinancing.
